Put wrong photo in report.

[Smokey Bear]

You don't send HER anything! You shouldn't be discussing this with her. Send the corrected report immediately to your client, not the borrower. Since the picture had nothing to do with the loan, and it was a clerical error only, there's no need for a refund either.

 

[jeanwillick]

"This was done several months ago. She is no longer trying to refinance because the rates are now higher, so I am not sure what a corrected report will do. Should I just tell her to shove it and send her a corrected report?"

The corrected report will put you in compliance with USPAP!!!! Also, it should be sent to the Client, not the borrower. You cannot discuss the report with the borrower--they are not your Client.

 

[Judy Whitehead (Florida)]

You can only send a report to your client - who I assume was the lender. I would do that in any case, and I would also call the lender and tell them what happened and get their direction, since they are your client.

 

[Financially Feasible]

[q
uote=Caterina Platt;1611475]Should I just tell her to shove it and send her a corrected report? (my bold)

I would absolutely not do that. She is not the intended user and, under no circumstances, should you send any report (corrected or not) to the homeowner if they did not order the original appraisal. The only person/people/company that you owe the original or corrected reports to is YOUR CLIENT. I do agree with the rest of my fellow Forum members that you do owe the client a corrected report. A follow-up call with them to let them know that is what you are doing would be advisable. Also, I might see if I could get something from them in writing that the incorrect subject photo had nothing to do with the homeowner's loan not closing. I'm sure that the State Boards would do nothing against you if she did bring a complaint... but it would be better, IMO, to have that in writing from the lender than to not have it. Definitely keep copies of all written correspondence between yourself and your client regarding the corrected appraisal as well (I keep all e-mails between myself and my clients in my workfile).

 

[Marcia Langley]

Wade,

The corrected report is very important no matter how long ago it was. The timeliness part is from when you learned of the error.

I'm sure your client will not think this is a big deal and may even be indifferent as to whether they get the correction. The important part is for you to deliver it to the client whether he wants it or not. Document the delivery in your work file.

 

[Caterina Platt]

I'd provide her a corrected report, explain the issue and the fact that the photo did not affect your analysis, nor would it have affected the underwriter's opinion considering the similarities in the subject and the nearly identical sale photo that was actually used. This would be in writing along with the corrected copy.

Your fee refund is a business decision, but were it me, I'd be leaning hard on the 'no'. I'm not able to get back to your original post without leaving this since it was on page 1, but if I remember right, your client was also being nasty about refunding part of the fee. Not a keeper client in my book. Again, it's your business decision.

Lastly, I'd document this whole issue and contact Alamode. I'll do the same, and it's caught me a time or two here as well. I merely wrote it off as being sloppy with the mouse at first, then I virtually watched the wrong photo place when I'd clearly highlighted a different one.

 

[LordofTexas]

The Lender has already stated that the photo was not the reason for decline. Politely inform the borrower that you have corrected the appraisal, re-delivered it to the Lender, and she can get a copy from them. This will replace any "wrong" appraisal on file. You have done your job and should not refund anything. IF you do want to refund her the money, I would ask for any copy that she AND the Lender has be returned to you. But, that's just my possum opinion.

 

[Bama Bayou]

Addend the report describing the error, forward it to the client and move on. No need for refunds or releases over a clerical error.

This is exactly what I would do. In addition, do not engage in any communication with the borrower. I would not worry about them sending the report to your board. This was a mistake, which is not a USPAP violation. A series of mistakes that lead to an incorrect value is a different story.

 

[Tudor]

Fix report, send to client, not homeowner, don't refund the fee.

Just because you refund the fee does not keep the homeowner or client from submitting the report to appraisal board.

I think you would get farther with the board if you refuse refunding the report and state their threat verses submitting a refund and then explaining to the board you caved into their threats, may make them think you have more to hide.

 

[Bearslide]

Excellent advice given to you here - correct the report, send it to the client, do NOT discuss it or send it to the borrower as she is NOT your client. I fail to see why a refund is in order - an incorrect photo is surely not the reason her loan didn't close.